Daily penalty - when can you claim compensation for delayed housing

What does daily fine mean?

A daily penalty is a statutory compensation that you as a buyer are entitled to if the takeover of the home is delayed. It functions as a daily “fine bill” for the contractor - an amount that is calculated per calendar day of delay.

The scheme means that you receive predictable financial compensation without having to document a specific loss. You do not need to show receipts, rental expenses or other financial loss to be entitled to a daily penalty; it is sufficient that the home is not ready within the agreed deadline.

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When can you claim a daily fine?

The main rule is simple: If the home is not completed by the agreed date, you can claim a daily penalty starting the following day.

The most common is that the agreement contains a specific deadline for taking over. If the home is still not ready when this date passes, there is a delay.

In some contracts, the takeover is not set with an exact date, but described more generally – for example “by the end of the 3rd quarter”. In such cases, the timing of the delay must be assessed based on what is reasonable, but it is always an advantage for you as a consumer to have a date in the contract.

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How much daily fine can you claim?

The Housing Registration Act sets clear frameworks for the calculation of daily fines ( Housing Registration Act Section 18 ):

• 0.1% of the purchase price per day when the agreement concerns a home without a plot of land.
• 0.075% per day if the agreement also includes land.

The law also sets a minimum amount – the daily penalty cannot be lower than 0.5% of the basic amount (G) in the National Insurance, regardless of the price of the home.

A daily penalty can be claimed for up to 100 days. If the delay lasts longer than that, you must consider other rights, such as a price reduction, compensation or possible termination of the agreement.

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When can the contractor get an extension of the deadline?

In some cases, the contractor may be entitled to an additional deadline. This means that the delay does not give rise to a daily penalty as long as the cause is beyond the contractor's control, or is due to circumstances on your side as the buyer ( Bustadopfføringsloven § 11 )

Common examples are:

• You have ordered changes or additions along the way that are delaying the project.
• You have not cooperated as agreed, for example by delaying necessary choices or decisions.
• Circumstances have arisen that the contractor could not foresee or prevent, such as extreme weather, strikes or delivery problems (force majeure).

The contractor must notify you in writing as soon as he becomes aware of the delay. If you do not receive such notification within a reasonable time, the contractor will normally lose the right to request an extension of time. In that case, the daily penalty will run as usual from the original date.

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Can compensation be claimed in addition to the daily fine?

Yes – in certain cases you may be entitled to compensation in addition to a daily fine.

This is applicable if the delay causes you a financial loss that the daily penalty does not cover. Examples may include:

• Expenses for temporary housing or rent.
• Moving and storage costs.
• Lost rental income if the home had been rented out.

To claim compensation, you must be able to document your loss. In addition, the delay must be due to circumstances for which the contractor can be blamed, such as poor planning or inadequate follow-up.

The daily penalty thus covers the general loss caused by the delay, while compensation may be applicable when you have incurred additional expenses beyond this.

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Get help from lawyers

Delays in housing projects happen more often than many people think, and it can be difficult to know how to proceed. We have extensive experience in property law matters, and can assist you in calculating daily penalties, filing claims against the contractor, and ensuring that you are paid the correct compensation.

Contact us here for a no-obligation assessment of your case.